Euro zone investor morale up in July but recovery could stall – Sentix
Investor morale in the euro zone improved for a third month running in July but a dip in expectations suggests the recovery from the impact of the coronavirus pandemic could soon peter out, a survey showed on Monday.
Sentix’s index for the euro zone rose to -18.2 from -24.8 in June. That compared with the Reuters consensus forecast for a reading of -10.9.
The current situation index rose for a second month in a row, to -49.5 from -61.5 in June. However, the expectations index for the bloc dipped to 19.5 from 21.8.
“There is a danger that the ‘upswing’ could run out of steam as early as the summer,” said Sentix managing director Manfred Huebner.
Investors said they expected that only around 60% of coronavirus-related economic losses would be recovered within a year in the euro zone.
In Germany, investors expect only around 65% to be made up within a year despite the government’s economic stimulus package, with the expectations index also dipping slightly in Europe’s largest economy.
Sentix surveyed 1,109 investors between July 2 and July 4.
Source: Reuters (Reporting by Emma Thomasson; Editing by Michelle Martin)